Voluntary Arbitration

Topics: Trade union, Arbitration, Dispute resolution Pages: 10 (3424 words) Published: April 17, 2013

Conflict and disputes are endemic to industrial societies. The Industrial Disputes Act of 1947 was enacted with the specific purpose of settling industrial disputes and to secure industrial peace and harmony by providing the machinery and procedure for the investigation and settlement of such disputes. It seeks to regulate the employer- employee relationship and streamlines a network of machinery and authorities stipulating their powers and procedures. If we look at the historical context when the Industrial Disputes Act was promulgated, we find that the industrial outlook has undergone a sea change. Till the Second World War, there practically was no effective machinery for industrial disputes in India. In this direction, the Bombay Industrial Disputes Act, 1938 was the first important legislation. However, during the Second World War, State intervention became necessary in the settlement of industrial disputes and the Defence of India Rules was promulgated by the British. The Industrial Disputes Act, which was enacted at the time of independence, incorporated these Rules2. Thus, in essence, the Government placed increased reliance on its own intervention in, and control over labour relations. The labour force was seen to be weak and helpless and their protection was necessary. The Act provided for a system wherein Labour Officials could legally mediate and conciliate between disputing parties, and if this failed, refer the dispute for compulsory adjudication. The justification was to ensure social justice to both employers and employees, as the State was a socialist one, operating in a mixed economy.

The aim of the project is to present a detailed study on the topic of Voluntary Reference of Dispute to Arbitration. SCOPE AND LIMITATIONS
Though this is such a topic that a book can be written on it but because of certain restrictions and limitations I was not able to deal with the topic in great detail. SOURCES OF DATA
The following secondary sources of data have been used in the project- 1. Articles
2. Books
3. Websites

The method of writing followed in the course of this research paper is primarily analytical. RESEARCH METHODOLOGY
The research work of this project is based on doctrinal method. MODE OF CITATION
The researcher has followed a uniform mode of citation throughout this project. Chapterization
The project have been divided into various chapters each dealing with different aspects of the topic.


The main object of the enactment of the Industrial Dispute Act, 1947 is to ensure social justice to both the employees and employers and advance the progress of industry by bringing about the existence of harmony and cordial relationship between the parties so as to bring about industrial peace which would accelerate procedure activity of the country. The Act provides for prevention and settlement of industrial disputes. The term Industry is defined in Section 2(j) of this Act: Industry means any business, trade, undertaking, manufacture or any service, employment, handicraft or industrial occupation or vocation of workmen. In the case of Banglore Water Supply v A Rajappa a bench of the Supreme Court consisting of seven judges exclusively considered the scope of industry and laid down the following test which has practically reiterated as under: "Where there is (i) systematic activity, (ii) organized by co-operation between employer and employee, (iii) for the production and/or distribution of goods and services calculated to satisfy human wants and wishes, prima facie, these is an "Industry" in that enterprise." This is known as Triple Test. The Following points were also emphasised in the said case:

(1) Industry does not include spiritual or religious services or services geared to celestial bliss, e.g. making on a large scale, "parsed" or food. (2) Absence of...
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